Kronos To Build A New Shopping Centre In Galicia For €35M

28 September 2017 – La Región

Kronos, a company that develops and manages both residential and commercial assets and that has projects all over Spain, is going to embark on an important operation on the San Cibrao das Viñas industrial estate (in Ourense). The firm is going to build a large retail park on a plot of land measuring 40,000 m2, of which 18,100 m2 will constitute the net sales area. The park will be located on the site of the former Muebles Calvo factory, on the main road of the industrial estate, next to the access roundabout, by the Reboredo exit. The property’s façade overlooks the road, along which more than 20,000 vehicles travel per day (…).

Kronos has been looking for a site for this retail park for a year and a half “in areas where the market is interesting, and Ourense undoubtedly appealed to us for that reason”, says Manuel Holgado, Partner at the property developer. In addition to the 18,100 m2 of sales space, the retail park will have 750 parking spaces and the total investment is expected to amount to around €34.5 million. The company calculates that 250 direct jobs will be created as a result of the operation, as well as 96 indirect roles.

The largest store will be occupied by a DIY company

Enrique Feduchy, Partner at Kronos, says that the names of the commercial brands that are going to move into the park cannot be confirmed yet “because we are still holding negotiations”, but he did reveal that the largest retail space, around 8,000 m2, will be reserved for a DIY company.

In addition, there will be a food space, which will occupy 2,000 m2; another space measuring 1,500 m2 for domestic appliances; and the rest of the stores will house retail, sportswear, household goods, textiles and leisure goods, according to the first version of the plans “which may be subject to changes”, according to the company.

Feduchy specifies that the model that they are going to introduce in San Cibrao “does not exist in Ourense, because it is going to be a retail park with specialist stores, serving a sector of the public that will travel from Vigo, Santiago and A Coruña”. According to the developer’s plans, the first phase of the construction work will be undertaken during the first half of next year (…) and the park is expected to be open by the end of 2019 (…).

In terms of other opportunities, Manuel Holgado says that “we are looking at other options in Galicia for residential and commercial operations, but we have not signed anything yet” (…).

Original story: La Región

Translation: Carmel Drake

Galician Gov’t Sells 24% Of Its Discounted Industrial Land In 2 Years

23 January 2017 – La Opinión A Coruña

The Galician regional government (La Xunta) has recorded turnover of €31 million from the sale of 304 plots over the last two years, after applying a discount of €23.7 million. Its sales increased ten fold during the first year, but decreased by 55% in 2016.

The sale of industrial land by La Xunta decreased by 55% last year, despite significant reductions, of up to 50%, on the initial prices. Acquisitions of plots of land in public business parks have slowed, even though the large discounts and payment facilities have continued. Two years ago, the Executive launched a plan to lighten its stock of industrial land. The result is the sale of 24% of the land it put on offer.

In 2015, the Galician autonomous government, through Xestur and IGVS, managed to sell off 200 plots of land, covering 491,140 m2, after it launched its industrial land sales plan. It was a wake up call, given that it multiplied the surface area sold in the previous twelve months almost ten-fold, up from 53,515 m2 to almost 500,000 m2. Nevertheless, one year later, only 104 plots were purchased, covering a surface area of 195,722 m2. As such, four times more land was sold than before the discount plan was launched, but half as much than during the debut year.

Why the decrease? “There was a significant amount of activity in 2015 because business people made a huge effort to buy, as they expected the discounted prices to apply for one year only. In 2016, they realised that the discounts were permanent and so they were no longer in such a hurry to buy”, say sources at the Regional Ministry of Infrastructure. (…).

After two years, the Galician regional government has sold 304 plots, covering a combined surface area of 686,863 m2, which represents 23.8% of the total space it initially put up for sale. (…).

674 more plots are still on the market, covering a total surface area of 2.1 million m2 and with a global sales price of €139 million.

The sales volumes of plots in industrial parks vary by province. A Coruña was ranked second in terms of the number of operations (19.4%), behind Lugo (46%). It was followed by Ourense (18.6%) and Pontevedra (8%). (…).

Original story: La Opinión A Coruña (by P. Pérez, I. Bascoy and J. Carneiro)

Translation: Carmel Drake

Housing: Rental Prices Increase By 2.6% In 2014

21 January 2015 – El País

Barcelona is the most expensive regional capital in Spain and Lugo is the most economical.

House rental prices in Spain closed the year (2014) with a slight increase of 2.6%, to reach €7 per square metre per month. During the last quarter of the year, prices continued to rise, up by 0.2%.

“The data shows a stable outlook for the rental market, which although is now recovering, is not showing any signs of a sudden increase in prices. In any case, as with the market for house sales, we have to recognise that the rental market has two speeds. Thus, the increases recorded in markets such as Madrid, Barcelona, tourist areas and specific areas of the País Vasco have sparked interest from investors towards these regions, however this has been at the detriment of other less profitable areas”, says Fernando Encinar of

By autonomous region, the greatest increase was recorded in Cataluña, where landlords are now charging 9.8% more to let their properties than a year ago. It is followed by the regions of Extremadura (3.9%) and the Balearic Islands (2.4%).

By contrast, Murcia and Galicia have experienced price reductions of around 4% and 3%, respectively.

Madrid continues to be the most expensive autonomous region, at €10.20 per square metre. It is followed closely by the País Vasco (€10.00/m2) and Cataluña (€9.20/m2).

Barcelona consolidated its position as the most expensive regional capital in Spain, with an average price increase of 11% to take it to €12.50 per square metre; it is followed by San Sebastián (€11.80/m2) and Madrid (€11.40/m2). At the opposite end of the table, we find Ourense and Lugo, as the cheapest regional capitals, with an average price of around €4.10/m2 in both cities.

Notably, Jaén was the regional capital that saw the highest increase in rental prices in 2014, which grew by 10.4%.

Original story: El País (by Paula Cossío)

Translation: Carmel Drake